Joan Burton (Dublin West, Labour)
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142. To ask the Minister for Finance if his Department has assessed the impact on VAT revenue from residential property sales of new residential schemes being built on a build-to-rent basis; if changes are required in respect of this; and if he will make a statement on the matter. [37414/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The sale and leasing of residential property is treated differently for VAT purposes under Irish and EU VAT law. The EU VAT Directive 2006, with which Irish VAT law must comply, provides that residential property must be charged to VAT while residential leases must be exempt from VAT. In this context, build-to-rent developments are exempt from VAT.

While the sale of residential property generates VAT for the Exchequer and the renting of property does not, it is not a loss to the Exchequer if more properties are developed for rent than sale, it is merely a function of the VAT system.